STAND. COM. REP. NO. 1000

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 553

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committees on Economic Development and Technology and Health, to which was referred H.B. No. 553, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO MEDICAL ENTERPRISE ZONES,"

 

beg leave to report as follows:

 

     The purpose of this measure is to encourage the establishment of modern medical and research facilities within the State by establishing a Medical Enterprise Zone Program to initially consist of a pilot medical enterprise zone in West Maui.

 

     Testimony in support of this measure was submitted by Hawaii Association for Justice and West Maui Improvement Foundation Inc.  Testimony in opposition of this measure was submitted by the Department of Taxation and the Department of Business, Economic Development, and Tourism.  Comments on this measure were submitted by the City and County of Honolulu Department of Planning and Permitting.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

 

     Your Committees find that our State, especially in rural areas similar to West Maui, would benefit greatly from the establishment of modern medical facilities for health care and research that would attract highly skilled medical professionals to work in Hawaii.  Your Committees also find that limiting the potential investment and subsequent tax credits and tax exemptions to a medical enterprise zone pilot project in West Maui will minimize any potential negative financial impact on the State, while at the same time allowing the State to evaluate the medical enterprise zone's performance and attractiveness.

 

     Your Committees have amended this measure by:

 

     (1)  Designating the Director of Business, Economic Development, and Tourism, rather than the Director of Health, as the entity to which the governing body of the County of Maui shall transmit a description of the proposed location of the pilot program in West Maui;

 

     (2)  Directing the Director of Business, Economic Development, and Tourism, rather than the Director of Health, to designate the proposed area in West Maui as a medical enterprise zone for a period of seven years;

 

     (3)  Changing the effective date to December 31, 2050, and applying it to taxable years beginning after December 31, 2050, to promote further discussion;

 

     (4)  Changing the repeal date to January 1, 2017; and

 

     (5)  Making technical, nonsubstantive amendments for the purpose of clarity.

 

     As affirmed by the records of votes of the members of your Committees on Economic Development and Technology and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 553, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 553, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Economic Development and Technology and Health,

 

____________________________

DAVID Y. IGE, Chair

 

____________________________

CAROL FUKUNAGA, Chair